SM Energy to sell South Texas assets to Caturus Energy for $950 million

(WO) — SM Energy has entered into an agreement to sell certain South Texas assets to Caturus Energy (formerly Kimmeridge Texas Gas) for $950 million in cash, advancing the company’s effort to streamline its portfolio and reduce debt.

The transaction includes approximately 61,000 net acres and about 260 producing wells in SM Energy’s southern Maverick basin position in Webb County, Texas, along with associated facilities. The assets are expected to produce between 37,000 and 39,000 boed in 2026, with an estimated production mix of 45% liquids, including 9% oil.

SM Energy said the properties are projected to generate roughly $160 million in asset-level cash flow during 2026, excluding corporate costs. As of Dec. 31, 2025, the associated net proved reserves totaled approximately 168 MMboe.

“This timely asset sale largely accomplishes one of our key priorities of selling more than $1.0 billion in assets, which will enable us to reduce debt and strengthen our capital structure,” said President and CEO Beth McDonald. “We are excited about the impact this divestiture has on our balance sheet and look forward to sharing our updated return-of-capital program when we report earnings next week.”

The deal carries an effective date of Feb. 1, 2026, and is expected to close in the second quarter, subject to customary adjustments. SM Energy said proceeds will primarily be used to reduce outstanding debt and reinforce financial flexibility.

RBC Capital Markets is serving as financial advisor to SM Energy, and Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor.